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OK, so you're probably thinking to yourself, "What makes MER Telemanagement Solutions Ltd. (NASDAQ:MTSL) different than any other stock heading into earnings?" and "What can drive MTSL stock up 100%?" Well, you'll find out shortly. For now, let's learn a little about the company.

"MTSL? What does it do? Who is this company?"

Based in Israel, via wholly owned subsidiaries operating out of the United States, Hong Kong, and The Netherlands, MTSL serves the growing global demand for comprehensive telecom expense management (TEM) and enterprise mobility management (EEM) solutions.

What does this mean? Major corporations have extensive telecommunication demands. MTSL streamlines the entire telecom life cycle for its clients. Not only does MTSL provide a value added service to organizations, but by outsourcing the entire life cycle, from procurement, asset management, budget management, quality control, contract and vendor negotiation, and other aspects of the cycle, the organizations can cut internal expenses, focus on their core competencies, and allow MTSL to provide expertise through its entire network and proprietary innovative solutions. Since this is MTSL has this domain expertise, clients can actually reduce costs, provide better telecom solutions, and adapt quickly to changing technology with ease.

"How come I haven't heard of it earlier if it provides such great solutions?"

Currently, MTSL is a relatively small company. At $4/share, the company is valued at approximately $18 Million. This market cap is very small, but growing. MTSL does not offer products or solutions to individuals or to small businesses. Large corporations or the enterprise space, benefit the most from hiring MTSL and paying for their services. Small businesses or individual families with a small network of phones or cell phones would not need to hire someone to negotiate a new contract or acquire new cell phones, but for companies that do this on a tremendously larger scale, it makes sense.

"Who actually hires MTSL to provide enterprise solutions?"

Although its market cap is still small, the firm does have a global reach. An impressive list of major companies who hire MTSL include: Lowe's (NYSE:LOW), The TJX Companies (NYSE:TJX), Costco (NASDAQ:COST), Siemens (SI), McAfee, and Aetna (NYSE:AET). Go here for a more extensive list.

"So, does MTSL make any money? How has it been doing?"

MTSL does have significant revenue which is growing and the firm is profitable. According to the most recent quarterly report, the firm beat revenue and earnings expectations for its 3rd quarter. "Year over Year Quarterly Revenues Increased 12% and Operating Income Increased 180%," says the report preceding the actual numbers.

The firm is also flush with cash. This free cash flow generating machine has a strong balance sheet, which should only be strengthened following its next quarterly report in February 2013, this month. According to the report linked above, the firm has Total Assets of $10.9M, $4.5M of which is in the form of cash and cash equivalents. With only $5.9M in total Liabilities, the company is properly capitalized for business continuity and growth.

Total Revenue for the third quarter increased by 12.5% year over year, while Net Income climbed 8.4%. MTSL is primed to climb, especially considering certain aspects that effect how the stock trades.

"So back to doubling.."

MTSL only has 4.459M shares outstanding. This small company only has an average daily volume of 123,519 shares traded. Yesterday only 46,207 shares were traded, and over the past 30 days on only 3 days did volume break 90,000. This low volume acts as gun powder for small cap stocks. Once companies like MTSL get any momentum, typically from earnings or other announcements, the low volume and illiquidity forces pressure to the upside. As MTSL is currently in a dark period leading to earnings, noise around the stock is quiet, but once earnings are reported and growth is shown to continue, the stock has significant potential to continue its rally.

Following each of the last two earnings reports, MTSL has had marches higher. Following their Q2 earnings report, the stock gapped higher upon open, chasing demand for the stock, rising from around $1.50 to above $2.75 in the same day. Again, following their most recent Q3 earnings release, the stock continued its ascent from around $3 to $4.50. Each quarter the firm has increased guidance a reaffirmed its commitments from its major clients. This is expected again for their February release.

This past week has offered a entry point for the stock after falling from its highs of $4.50 to $4.14. This provides an attractive entry point for such an explosive stock.

Here a contributor lists his prediction of MTSL surpassing $10.

I don't disagree with him, especially if MTSL can continue its growth over the next two quarters, but this is a firm that should be bought prior to earnings, which are coming close. The time to be long is now.

Source: Want To Double Your Investment? Buy MER Telemanagement Solutions Ltd. Before Earnings